As the rebound effect fades, our 10 markets to watch have strong fundamentals for housing activity. These include solid job growth, which fuels housing demand, and a low vacancy rate, which spurs construction. We gave a few extra points to markets with a higher share of millennials. These young adults are getting back to work and that will drive household formation and rental demand. We didn’t include markets where prices looked at least 5% overvalued in our latest Bubble Watch report. Here are our markets to watch, in alphabetical order:
Middlesex County, MA
New York, NY-NJ
Salt Lake City, UT
San Diego, CA
greater percentages of the Millennial segment are likely to participate in share communities globally, when compared with older respondents. Nielsen reports that among the 68 percent of global respondents who are likely to rent products from others in share communities, 35 percent are Millennials and 7 percent are Generation Z consumers.
Also in line with urban-living, most Millennials aren’t putting down roots just yet. Two-thirds of Millennials are renters, and they’re more likely to live with roommates or family members than alone. Millennial homeownership has fallen largely due to the recent recession: 14 percent of Millennial homeowners went back to renting in 2011, compared with 4 percent of the general homeowner population.